vedantu: Edtech unicorn Vedantu lays off 200 employees
This comes as startups continue to cut costs amid a tightening late-stage funding landscape.
A company spokesperson told Et that nearly 120 of those employees are contract workers and the rest are full-time employees.
Almost all of those made redundant belonged to the company’s academic teams, working as assistant professors.
“We have over 6,000 employees, of which approximately 120 contractors and 80 full-time or 3.5% of the total workforce are academics or teaching assistants, who have been reassessed,” the spokesperson said. . “We have an annual contract with them, and at the start of each academic year, we go through a load rebalancing process where we rearrange these roles, based on our growth expectations.”
Vedantu has focused on reducing the cost of its courses to handle the declining demand for online education as offline learning centers open up.
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The company used artificial intelligence, text-to-speech and content development to reduce course expenses.
It is also leveraging technology to reduce overall costs, which is also one of the reasons for the restructuring exercise, the company said.
“With more technological interventions, a restructuring of the class format and changes to the categories, we are reviewing these roles of our academics and teaching assistants. As we synchronize our growth targets for this year, we are also hiring over 1,000 employees across various teams, including over 100 for similar roles,” the spokesperson added.
On April 28, ET reported that more than 1,800 contract and full-time employees had been laid off from various startups, as investors began to ask high-growth companies to go back to basics – chase profits and cut their cash consumption.
Companies that have laid off employees in the past month include edtech company Unacademy, social commerce startups Meesho and Trell, online learning platform Lido Learning and furniture rental startup Furlenco.
Some of those companies may be looking to cut more jobs, ET had earlier reported, citing sources.
As investors step up due diligence amid easing public market valuations, many late-stage funding rounds have been delayed, increasing pressure on late-stage companies to cut consumption cash. Industry experts say that if these startups fail to raise new rounds, layoffs could worsen amid slowing funding.